Bringing Many Benefits, Here's the Expert's Response on the RPOJK for Bank Business Plans

Jakarta, CNBC Indonesia - The Financial Services Authority (OJK) is preparing adjustments to the Bank Business Plan (RBB) provisions to optimise the banking sector’s contribution to driving national economic growth.

These RBB adjustments will be formalised through an Otoritas Jasa Keuangan Regulation (RPOJK) to guide the direction of bank credit distribution, including support for government priority programmes.

In response, Bank Permata’s Chief Economist Josua Pardede assesses that the planned issuance of the RPOJK on RBB is fundamentally positive and relevant, as financing support for government programmes is incorporated into a more formal, measurable, and supervised banking planning framework.

According to Josua, there are several positive benefits for the banking sector if the RPOJK on RBB is issued. First, banks will have a clearer direction because financing for priority sectors will no longer stand alone but will be integrated into official business documents that must be realistic and aligned with the bank’s strategy.

Second, this policy opens up growth opportunities in sectors being promoted by the government, such as SMEs, housing, food security, downstreaming, and village programmes. Third, the RPOJK on RBB also demonstrates OJK’s support shifting towards macro policies. In this regard, macroprudential liquidity incentives are directed to boost bank credit growth in the real sector and government priority sectors.

“This means that for banks that are ready in terms of capital, liquidity, and sector analysis capabilities, this policy can become a more directed source of growth, not just an additional administrative burden,” Josua stated.

Nevertheless, Josua warns that the implementation of the RPOJK on RBB also carries real risks. One of the biggest risks is if the spirit of supporting government programmes is interpreted too narrowly as an obligation to chase credit distribution targets, thereby sidelining prudence principles.

From there, portfolio concentration risks will emerge, accompanied by mispricing of risks, credit disbursement to immature business models, and ultimately increasing problem loans. Credit risks in the SME segment and consumer credit also need to be monitored amid weak purchasing power and rising credit risks.

In fact, data shows that the banking industry remains strong. This is evident from credit growth of 9.37% year-on-year (YoY) in February 2026. In the same period, third-party funds (DPK) grew 13.18% YoY, the liquid assets to DPK ratio grew 27.4%, the gross non-performing loan (NPL) ratio was at 2.17%, and the capital adequacy ratio (CAR) was at 25.83%.

“But precisely because the condition is still strong, banks should not damage that quality with financing that is too guided by short-term policy considerations,” he explained.

Therefore, Josua emphasises the importance for banks to set boundaries. First, banks must continue to use feasibility measures, cash flow, collateral, programme implementation quality, and debtor repayment capacity when disbursing credit to government priority programmes. Second, banks need to set concentration limits based on sectors, core debtors, regions, and programmes to prevent risks from accumulating in one sector or industry.

Third, banks must apply a clear separation between commercially viable financing and financing that is only viable with interest subsidies, guarantees, or risk-sharing from the government.

Fourth, bank directors and commissioners must be proactive. Because the RBB must be prepared realistically, considering external and internal factors, prudence principles, governance, and risk management, then prepared by the directors and approved by the board of commissioners.

Fifth, banks must prepare revision plans from the outset. Given that the RBB requires explanations for deviations between plans and realisations, as well as follow-up improvements.

“So, support for government programmes can be expanded, but the risk fences must be stronger than for regular credit, not loosened,” Josua stressed.

In the end, Josua views that the draft RPOJK on RBB will strengthen supervision and transparency of credit distribution to support government priority programmes. However, its effectiveness depends on implementation.

Fundamentally, the RPOJK on RBB has built a more complete supervision chain, where there is a definition of the Business Plan Realisation Report by the directors and a Business Plan Supervision Report by the board of commissioners. OJK can also evaluate business plans and request banks to make presentations or provide comprehensive explanations.

In addition, the RPOJK on RBB requires explanations for the causes of deviations, obstacles, and follow-up improvements. Even if the banking sector is non-compliant, sanctions will be imposed, ranging from written reprimands to downgrading the bank’s health level and freezing certain business activities.